2008 annual general meeting 14 may 2009 - bicworld.com · 6 normalized* ifo growth1 normalized* ifo...
TRANSCRIPT
2008Annual General
Meeting
14 may 2009
Full Year 2008 & 1st Quarter 2009 results
4
2008 Net Sales
2.5%
7.2% 7.0%
5.0% 4.7%
2.4%
2003 2004 2005 2006 2007 2008
€1420.9 m
NET
SA
LES 2003 – 2008
growth averageat constant currencies:
+4.8%
Change in net sales at constant currencies
5
2008 Income From Operations margin
15.1%15.5%
16.2%
17.5%17.9%
17.4%
2003** 2004 2005 2006 2007 2008
2003 – 2008 Average Normalized IFO*
margin: 16.6%
€214.3 m
Nor
mal
ized
IFO
* Normalized* IFO margin (excluding exceptional items and real estate gains) as reported
6
Normalized* IFO growth1
Normalized*IFO margin
Net Sales growth1
Shav
ers
•BIC triple-blade one-piece shavers still a key growth driver•BIC® Soleil® System performance in the lower range
of our initial market share expectations -47.0% 4.1%+3.9%
Light
ers
•Good performance in Europe, due to price increases•North America affected by the economic slowdown•Continuous good performance in Latin America
-9.5% 29.2%+0.8%
Stat
ione
ry
•Maintained market share in Europe and North America, despite declining markets
•Good performance in Latin America•Promotional imprinted business experienced accelerated
sales decline in 4th Quarter
-3.8% 14.1%-0.4%
1: at constant currencies*: excluding exceptional items and real estate gains
2008 key figures and highlights by categories
7
2008: From IFO to Group Net Income
144.9172.9Group Net Income
3.003.51EPS
- 71.4- 87.7Income tax
216.3261.2Income before Tax
33.0%33.6%Tax rate
-3.3
10.0
209.6
2008
- 5.8Finance costs
11.2Interest income
255.8IFO
2007BIC GroupIn million euros
+1.3 million euros
8
Free Cash Flow
143,0
116.0
147.3
98.9
157.2159.6
2003 2004 2005 2006 2007 2008Cash from operating activities – cash from investing activities / after acquisitions
2003 – 2008 Average Free Cash Flow:
137 M€In million euros
9
1.351.351.301.15
0.58 0.65
0.80 0.80 0.901.00
2000 2001 2002 2003 2004 2005 2006 2007 2008
Dividend per share Special dividend
Shareholders’ remuneration
In euros
10
Group Q1 2009 Key figures
Net Sales: 308.4 million euros
Income from Operations: 36.3 million euros
11,8%12,4%
Q1 2008 Q1 2009
-0,8%
+0.1%
As reported At constant currencies
% of change
Margin Gross Profit margin impacted by higher
production costsContinued focus on
controlling OPEX
Significant slowdown in Europe and continued
growth in Latin America
11
Group Q1 2009 Key figures
EPS: +7.7% increase
Net Cash Position
0,52 0,56
Q1 2008 Q1 2009
155 147*
Q1 2008 Q1 2009
In euros
In million euros
Strong cash generation due to CAPEX monitoring
and improvedworking capital
*: excluding phasing impact due to Cello acquisition
13
Our fundamentals
Aninternational & experienced
Management team
14
Worldwide Positions
Products
StrongBalance
Sheet
Our fundamentals
Brand
15
Quality products
• Easy answers for everyday needs
• Quality and safety for 40 millionproducts that consumers choose to buy each day, from the simplest to the most sophisticated
16
Quality and best value products
17
Strong Brand…S
18
Strong Brand…S
19
Stationery
10% market share
Shavers20% market share of one-piece shavers
in USA and Europe
N°2 N°1
N°2
Lighters
35% market share
Worldwide positions
20
Strong balance sheet
31 December 2008
1.4bn euros assets
1.2bn euros shareholders’ equity
211m euros net cash position
BIC today
Our strengths
22
Historical and close
relationship with the trade
Iconicproducts
Worldwide leadership positions
Strong positions in major market
segments Consumer trust for more than 50 years
Innovation
Strong brands
More than 3m outlets
worldwide
Stationery: Quality at a BIC price
23
Stationery: long lasting products
1959 1969
24
40 years for the 4 colors50 years for
Stationery: long lasting products
25
Roller - BIC® Triumph™
Ball Pen - BIC® Cristal® Large
Mechanical Pencil – BIC® AI™
Index Dispenser
Colour felt pensBIC® Kids Colour & Erase
Correction Tape - Tipp-Ex® Easy Refill
Stationery: on-going innovation
26
35%
< 30%
> 60%> 60%
Europe worlwide North America Latin America
Brand awarenessUS Disposable Pocket Lighter
8%
10%
86%
Market leadership
Estimated market shares (in value)
Pocket lighters in markets where BIC is present
Consumer preference
Lighters: the only worldwide branded manufacturer
BIC
Competitor A
Competitor B
27
Quality
Prevention and education
Safety
Lighters: BIC, the only worldwide branded manufacturer
28
North America Europe
Worldwide
Europe
Latin America
Lighters: continue to offer more value-added products
29
3 blades men One-piece shavers – France (€)
1.491.281.26
0.780.57
BIC 3 BIC Ecolution BIC Comfort 3Advance
Schick Xtreme3
Gillette Sensor3
Non promoted price per volume – January 2009
Shavers: quality and innovation at a reasonable price
€1
30
3 blades women One-piece shavers – France (€)
1.491.281.26
0.78
Pure3 Lady Soleil Disp Sensor3 Disp Extreme3 BeautyDisp
Non promoted price per volume – January 2009
Shavers: quality and innovation at a reasonable price
€1
31
Shavers today: key products on all our markets
BIC Comfort 3™ Actionin Latin America
BIC 3™ and BIC Comfort 3™ Advancefor men
The BIC® Soleil range for women
32
New BIC® Easy: the 1st “all in one”shaver: 1 handle + 6 cartridges
Shavers: quality and innovation at a reasonable price
New 4 individually moveable blades technologyfor one-piece and refillable shavers
New BIC® Ecolutions™: the 1st BIC® shaver with a bioplastic handle
33
On-going improvement of cash generation
83777190*
7070
2003 2004 2005 2006 2007 2008 2009Est.
CAPEX
Working Capital
*: including Shelton offices for 10 million euros
164 148
Dec 07 Dec 08
Inventory turnover in number of days
In million euros
34
Flexibility
Costs
Savings
Approximately 50 million euros partially offset by a negative goodwill on APP
Net impact: appr. 35 million euros fully in 2009 accounts
App. 30 million euros annualized gains starting in 2010 with full year expected benefits in 2011
2009 cost reduction plan to adapt to recent evolution of our key markets
35
A common sense approach to sustainable developmentA stationery range
made from recycled material
A shaver made from bioplastic
BIC tomorrow
37
Strategic partnership with Cello®
Pens
AntalisPromotional
Products
• Acquisition of 40% of Cello® Pens writing Instrument business for €124 M* with a call option to increase stake to 55% in 5 years
•Acquisition of 100% of Antalis Promotional Products (APP) for 33.5 million euros
Two recent acquisitions
* 63.6 INR = 1 euro (January 20, 2009)
P E N S
38
A large and long-term growth market
*: Excluding Asia Pacific
Why the promotional products industry?
manufactured value* (estimated)12 bn euros
13%
4%
of companies’ total communication spending
annual average growth during the last 20 years
39
A highly diverse & fragmented product offer
Why the promotional products industry?
Others
Awards
Calendars
Office business
Drinkware Bags
Writing instruments
Wearable
27%31%
10%
6%7%6%6%
7%
27%31%
10%
6%7%6%6%
7%
40
An historic legitimacy for BIC in that business
N°1 branded supplier in imprinted writing instruments and lighters
Why the promotional products industry?
Strong positions in its markets(Europe, US, Latin America)
41
2 complementary business models
Vertical integration
•Excellence in order entry and imprinting
•Perceived as specialized player
Horizontal integration
•European supplier with a wide range of distributors
•A complete range of non-imprinted of products
•Specialized in sourcing
Why APP?
42
Reinforce BIC’s leadership position
A complete range of products and
services
Imprinted and non-imprinted
approach with 2 separate
entities
Global sourcing capacities
Potential leverage in North America
and Latin America
Why APP?
43
Our international footprint
Europe
North America
Latin America 33%
41%
20%
6%
33%
41%
20%
6%
MEAA
2008 net sales breakdown by geography
44
N°1 in Europe
(15% market share)N°2
in North America(13% market share)
N°1 in Latin America
(24% market share)
N°2 in Oceania
(16% market share)
N°1 in Africa
Writing instrument market shares
Stationery – our footprint end of 2008
45
Stationery Consumer – Where will the growth come from?
BIC Estimate & Published Research - 2007
China
IndiaEastern Europe
Latin America
WesternEurope
North America & OceaniaJapan
-3%
-1%
2%
4%
6%
8%
10%
12%
14%
Size in million euros
Market growth
2006-2007 market trends by geographies (in value)
46
India
SOURCES : FMI - World Economic Outlook Database
2000 2005 2010 est. 2015 est. 2020 est.
460560
> 800
> 1,100
> 1,600
Strong potential for GDP per capita within the next 10
years
Urban areas30%
Rural areas70%
Increasing demand for quality/branded
products from growing middle-
class
Increasing penetration of
branded products with an extensive
sales & distribution network
A dynamic and competitive private sector representing more than 75% of total GDP
47
cc.3
cc. 17
India US
Total pen market: ~ 345 million Euros*
Low but increasing per capita pen consumption
Highly fragmenteddistribution network
* 63.6 INR = 1 euro (January 20, 2009)
Writing instruments in India
Modern retail
Stationery shops
General stores
Traditional« Mom&Pop »
stores
5%
25%
46%
24%
48
A clear market leader
37%
63%
Writing instruments in India
P E N S
Lexi, Flair, Linc, Add Pens, Montex, GM Pens, Luxor, Today’s, Rotomac
49
90% unaided awareness
The leading Indian writing instrument brand
1 bn pens per year
Cello Pens
The widest distribution network in India
Cello Pens are distributed nationwide through
731,000 outlets all across Indiaa network of 42 super-stockists and 4,200 distributors
50
4,100
2,300
02-03 07-08
Strong growth - High Profitability
12% 5 years
sales CAGR
Approximately 30% FY07-08 EBIT margin
Cello Pens
P E N S
P E N S
Net Sales (in million INR)
51
Supplement BIC® product range with select
Cello® Pens products in other countries
Strengthen Cello® Pens’position in India by adding
BIC® products and BIC brand to its domestic portfolio
Extend BIC stationery business to one of the most dynamic writing instrument
markets in the world
Partner with the N°1 brand
in India
Develop emerging segments in India (Correction, Marking
and Mechanical Pencils)
Sharing best practices in new
product development and
manufacturing know-how
Strong benefits for both companies
P E N S
52
N°1 in Europe
(15% market share)N°2
in North America(13% market share)
N°1 in Latin America
(24% market share)
N°1 in India
(37% market share)
N°2 in Oceania
(16% market share)
P E N S
N°1 in Africa
Writing instrument market shares
An enhanced growth profile for both companies